Used car prices 'have decreased'

Used car asking prices fell by 3.9% year-on-year between January and March, research has shown.

The latest Price Index from Auto Trader revealed that during the first three months of this year the average asking price for second hand cars fell to £8,891.

With prices at the pump rising andcar insurance costs always a consideration, motorists looking to buy a new car will be encouraged by the opportunity to get a good bargain while they can.

The Auto Trader study revealed that the price falls have been driven by lower consumer demand for second-hand cars.

There have also been fewer new car registrations as a result of the weaker economic situation, with more older vehicles flooding the second-hand marketplace.

Results showed that the number of three to 10-year-old cars on sale has grown to 67%, while the amount of cars less than three years old has dropped by 10% to 23%.

Although slower demand for older cars saw the prices slump, average vehicles less than three years old have actually become slightly more expensive - rising from £14,612 to £14,797.

Tim Peake, group strategy director at Auto Trader, said: "The impact of five years of weak new car registrations, aligned to weak spending in the overall economy, has meant a lack of supply of younger vehicles."